Orcs and dwarves (with a v) are creations of Tolkien, if the fantasy stories include them, it's a violation of copyright the same as including Mickey mouse.

My argument would have been to ask the ai for the bass line to Queen & David Bowie's Under Pressure. Then refer to that as a reproduction of copyrighted material. But then again, AI companies probably have better lawyers than vanilla ice.

I have a freely accessible document that I have a cc license for that states it is not to be used for commercial use. This is commercial use. Your policy would allow for that document to be used though since it is accessible. This kind of policy discourages me from easily sharing my works as others profit from my efforts and my works are more likely to be attributed to a corporate beast I want nothing to do with then to me.

I'm all for copyright reform and simpler copyright law, but these companies need to be held to standard copyright rules and not just made up modifications. I'm convinced a perfectly decent LLM could be built without violating copyrights.

I'd also be ok sharing works with a not for profit open source LLM and I think others might as well.

That "freely" there really does a lot of hard work.

as it is already

Copies of copyrighted works cannot be regarded as "stolen property" for the purposes of a prosecution under the National Stolen Property Act of 1934.

https://en.m.wikipedia.org/wiki/Dowling_v.United_States(1985)